ActivitiesActivity CostCorrecting invoice errors$$16,560$Disposing of incoming materials with poor quality$13,800$Disposing of scrap$35,880$Expediting late production$30,360$Final inspection$24,840$Inspecting incoming materials$5,520$Inspecting work in process$30,360$Preventive machine maintenance$19,320$Producing product$82,800$Responding to customer quality complaints$16,560$Total$$276,000$

The production process is complicated by quality problems, requiring the production manager to expedite production and dispose of scrap.

Required:

$1.$Classify the activities into prevention, appraisal, internal failure, external failure, and not costs of quality $($producing product$).$ Classify the activities into value$-$added and non$-$value$-$added activities.

ActivityActivity

CostCost of Quality

ClassificationValue$-$Added$/$

Non$-$Value$-$Added

ClassificationCorrecting invoice errors$$16,560$

AppraisalExternal failureInternal failureNot costs of qualityPrevention

Non$-$value$-$addedValue$-$added

Disposing of incoming materials with poor quality$13,800$

AppraisalExternal failureInternal failureNot costs of qualityPrevention

Non$-$value$-$addedValue$-$added

Disposing of scrap$35,880$

AppraisalExternal failureInternal failureNot costs of qualityPrevention

Non$-$value$-$addedValue$-$added

Expediting late production$30,360$

AppraisalExternal failureInternal failureNot costs of qualityPrevention

Non$-$value$-$addedValue$-$added

Final inspection$24,840$

AppraisalExternal failureInternal failureNot costs of qualityPrevention

Non$-$value$-$addedValue$-$added

Inspecting incoming materials$5,520$

AppraisalExternal failureInternal failureNot costs of qualityPrevention

Non$-$value$-$addedValue$-$added

Inspecting work in process$30,360$

AppraisalExternal failureInternal failureNot costs of qualityPrevention

Non$-$value$-$addedValue$-$added

Preventive machine maintenance$19,320$

AppraisalExternal failureInternal failureNot costs of qualityPrevention

Non$-$value$-$addedValue$-$added

Producing product$82,800$

AppraisalExternal failureInternal failureNot costs of qualityPrevention

Non$-$value$-$addedValue$-$added

Responding to customer quality complaints$16,560$

AppraisalExternal failureInternal failureNot costs of qualityPrevention

Non$-$value$-$addedValue$-$added

Total$$276,000$